Global Crossing Offers to Acquire Fibernet

By Johanne Torres

TMCnet Contributing Editor

 

Global Crossing's subsidiary GC Acquisitions UK Limited ("GC Acquisitions UK") announced Friday that it made a cash offer to acquire all of the issued and to-be-issued shares of telecom network provider Fibernet Group, which are valued at approximately $96.1 million.

 

According to the company's news release, Fibernet shareholders would receive approximately $1.48 per share in cash at closing of the transaction if the offer is accepted. "The directors' shares combined with the institutional shares represent approximately 39 percent of Fibernet's outstanding shares," noted the release.

 

"This is a great transaction for our company and for Fibernet," said John Legere, chief executive officer of Global Crossing in a statement. "Global Crossing and Fibernet have complementary businesses in the UK. The opportunity to combine and grow these businesses is compelling and exciting for us. I look forward to a quick and seamless integration upon closing and to better serving existing customers and welcoming new customers with the expanded range of products we will offer."

 

Global Crossing and Fibernet have complementary long haul networks, making it easy for integration once the companies combine if the merger is approved.

 

Fibernet provides its services from a national fiber network in the UK and also from its metropolitan networks in London, Bristol, Birmingham, Edinburgh, Frankfurt, Glasgow, Leeds, Manchester and Reading.

 

"In an increasingly competitive market, where the consolidation of two complementary businesses can deliver a stronger combined company, I believe that this union will provide an enhanced position for the interests of stakeholders overall," stated Charles McGregor, chief executive of Fibernet.

 

The companies expect to complete the acquisition in the fourth quarter of this year.

 

Today's news follows Global Crossing's recent deal with MySpace.com. The social networking community hired Global Crossing to provide Dedicated Internet Access (DIA) services. Under the new multi-year agreement, Global Crossing will connect four of MySpace.com's North American facilities through its MPLS-based DIA service. Global Crossing's DIA provides always-on, direct high-speed global Internet connections at speeds ranging from 56/64 Kbps to OC48/STM16, as well as Fast Ethernet, Gigabit Ethernet and even 10-Gigabit Ethernet.

 

Global Crossing

 

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